Revolutionizing in-mill logistics through data: Using intelligence to improve efficiency

Digital manufacturing processes are driving the sophistication level of in-mill logistics systems. For our customers, this means improvements in plant efficiency, capacity and product quality.

Pesmel already established its own ICT department more than ten years ago, and it is a big part of the business today. The company has since harnessed the potential of Industry 4.0 and digital manufacturing through the Material Flow How® concept – the backbone of Pesmel’s business.

“Material Flow How® is our customer promise and core competence. It has been our primary focus from the outset, combining advanced digital systems, in-house engineering capabilities, and extensive knowledge in material flow,” says Tony Leikas, CEO of Pesmel.

According to Leikas, digital manufacturing is still relatively new to the steel industry. He recalls a client that wanted a system capable of pinpointing potential logistical bottlenecks.

“The system constantly collected data, identifying bottlenecks and providing advice on how to optimize these sequences. This was more than ten years ago. We have since developed different areas of the solution, and it is now a standard function in our machines,” Leikas explains.

Digitalization and customization give a competitive edge

Leikas strongly believes that the Fourth Industrial Revolution, Industry 4.0 as it is often referred to, will continue to open up all sorts of new possibilities in the field of in-mill logistics. While there are many similarities between in-mill logistics systems, there are many unique aspects as well. This is largely due to each customer wanting to build their own competitive advantage. Typically, it is the software that makes the difference. For Pesmel, identifying the similarities is crucial in developing an in-mill logistics system because the process is complex, and it is important to make the distinction between the run-of-the-mill and the more customized elements of the project. There is, therefore, a fine-tuning process at work. This gives Pesmel’s customers a much-desired competitive edge.

The in-house developed control system is a core part of the Material Flow How® concept. Pesmel Control provides comprehensive control on all levels of the control system. Pesmel Control consists both of standard software and customized modules in order to integrate into the customer’s own systems flawlessly. This integrated control system covers automation levels ranging from basic equipment control, to more complex production planning and execution. It includes both the Warehouse Management System (WMS) and the Yard Management System (YMS).

Pesmel offers its customers a remote supervisory and preventive maintenance solution, called FlowCare, in addition to the control system.

“This remote online tool can be accessed on any device and provides a comprehensive view into the performance of your Pesmel equipment,” Leikas explains. “All key data is clearly visualized, and various reports are easily generated and sent off via email. The solution even offers interactive system support and access to an online shop for spare parts and services.”

Companies are adopting data analytics to optimize operations

The combination of sensors, control systems, and automated handling equipment is seen as the future of safety and efficiency. Data analytics are increasingly used to identify improvement areas to boost productivity and margins, whereas management software provides inventory information and improves the end-consumer experience through connectivity and real-time data. Automation solutions can be further optimized through programming for continuous process improvements such as dynamic storage, inventory management, and overnight relocation of goods.

“In-mill logistics is Pesmel’s speciality. Combining ICT with traditional machine making makes us unique and gives us an edge.”

Tony Leikas, CEO

Steelmakers rely on sophisticated in-mill logistics systems to help them achieve greater capacities, enhanced efficiency, and higher quality end products, as well as being better-placed to manage change.

“Our systems provide exactly these kinds of possibilities,” Leikas concludes.

Taking smart system integration beyond the mill

We are seeing a growing trend in the expansion of the scope of intelligent logistics. As systems communicate and interface with each other, sharing information between systems and using data for the management of entire logistics chains is becoming easier; starting from the mill and covering the transport of goods via road or rail all the way to the shipping port or even the customer.